Let The Borrower Pick The Appraiser

[jay trotta]

Let's suspend reality.....
Once the lender and borrower agree to loan terms.....
The lender provides the borrower with a list of say 5-10 approved fee appraisers located within the subject's location....
And it will be the borrower's responsibility to call and interview the appraisers on the list and decide which appraiser to "hire"....based on fee, due date (obviously the due date will have go reflect rate locks), appraiser's personality, availability, etc......

If that could happen would appraiser be at peace with this system???

No, for obvious reasons. (IE: will take the cheapo appraiser and offer a bonus when you get there to influence the outcome)

As for Fees, this is always an issue since AMC's have entered the arena; IMO "skimming" is misleading, if not, where is the AMC Fee noted in the HUD 1 ??

The Federal/State Requirement for Appraiser Licensure is a requirement; therefore, the Fee should be in recognition of the; Education / Qualifications and Geographic Competency to meet FNMA/USPAP guidelines; it has nothing to do with an AMC or Bank Influenced AMC.

I have yet to see any other "Profession" pay a Service Fee to a middleman; Plumbers / Carpenters / Lawyers etc. set their Own Fee;

In order to attract "New Talent" into this so-called Profession, the "License/Certification" requires power & stability in it's Free Enterprise system, not controlled by an outside party. Until that becomes an Industry Standard (as it use to be), new talent will not enter this business, it lacks attraction as a "Small Entrepreneurial Business" when the income stream is controlled by an outside party.

 

[Eli]

Don't get me wrong about fees - I'm just making an observation about how people outside our business perceive us. I think most appraisers work hard for the fees they make, possibly too hard.

I console myself with the other perks of the job. That works for me. So this is where I break into The Speech, the high points of which I think we all need to hear from each other from time to time and in one form or another:

I believe in the legitimate role appraisals play in furtherance of providing our users with the information, analyses and conclusions it takes to assist them in making informed decisions. I believe in appraisers and I believe in the appraisal profession. I believe appraisers as a group are hard working and conscientious and I'm way more comfortable in the company of my professional peers than in any other group I can think of except for my immediate family.

But I try not to ever lose sight of the fact that as far as the banking business goes we are often considered parasites, and the due diligence function we perform is sometimes regarded as a drag on commerce. A traffic barrier impeding and sometimes halting the progress of that deal.

I also try to have realistic expectations for how we and our work is or isn't valued in that market. I believe that any appraiser who needs external validation for the appraisal function or the pat on the back for a job well done is in the wrong line of work. That's not what we do and it's not what drives most of us. Most appraisers I know - including every last soul participating in this thread - are internally motivated. That's no fluke, either; its basically a critical attribute without which none of us would have survived in this business.

That's why I have no problems dealing with clients and users whose orientation and benchmarks are different than ours'. It makes it easy for me to assume the "I'll do me and you do you" attitude with others whose professional priorities conflict with ours.

I realize it ain't personal, it's just business. I think it might be helpful if we all kept that in mind.

That makes me think of how other professionals don't expect me to understand their professional practice. With you being a former police officer, I am sure you understand that but knowing several young officers at this point in my life, I know a pat on the back helps especially with the danger they put their lives in everyday. Military comes across as being the same way based on my life experiences with those type professionals.

 

[Eli]

Don't get me wrong about fees - I'm just making an observation about how people outside our business perceive us. I think most appraisers work hard for the fees they make, possibly too hard.

I console myself with the other perks of the job. That works for me. So this is where I break into The Speech, the high points of which I think we all need to hear from each other from time to time and in one form or another:

I believe in the legitimate role appraisals play in furtherance of providing our users with the information, analyses and conclusions it takes to assist them in making informed decisions. I believe in appraisers and I believe in the appraisal profession. I believe appraisers as a group are hard working and conscientious and I'm way more comfortable in the company of my professional peers than in any other group I can think of except for my immediate family.

But I try not to ever lose sight of the fact that as far as the banking business goes we are often considered parasites, and the due diligence function we perform is sometimes regarded as a drag on commerce. A traffic barrier impeding and sometimes halting the progress of that deal.

I also try to have realistic expectations for how we and our work is or isn't valued in that market. I believe that any appraiser who needs external validation for the appraisal function or the pat on the back for a job well done is in the wrong line of work. That's not what we do and it's not what drives most of us. Most appraisers I know - including every last soul participating in this thread - are internally motivated. That's no fluke, either; its basically a critical attribute without which none of us would have survived in this business.

That's why I have no problems dealing with clients and users whose orientation and benchmarks are different than ours'. It makes it easy for me to assume the "I'll do me and you do you" attitude with others whose professional priorities conflict with ours.

I realize it ain't personal, it's just business. I think it might be helpful if we all kept that in mind.

That makes me think of how other professionals don't expect me to understand their professional practice. With you being a former police officer, I am sure you understand that but knowing several young officers at this point in my life, I know a pat on the back helps especially with the danger they put their lives in everyday. Military comes across as being the same way based on my life experiences with those type professionals.

In most professions, reward is based on experience and how hard you work. Fastest and cheapest is wrong when public trust is the purpose. The original USPAP that Dwiley helped with was the best version by far imnsho.

 

[djd09]

The definition of independent is "not controlled by OTHERS".

Do the AMCs control appraisal selection?

Banksters loathing appraisers is a good thing.

 

[Eli]

The definition of independent is "not controlled by OTHERS".

Do the AMCs control appraisal selection?

Banksters loathing appraisers is a good thing.

What does loathing mean?

 

[Michigan CG]

You argue for keeping a system that is rewarding the fastest, cheapest appraiser and driving those with higher work ethic and quality out of the field.

I don't like the AMC system at all and I think a lot of them are unethical. That being said the fees you are being offered are the result of supply and demand. I don't think that many of these AMCs are telling their customers the truth about how they find the appraiser. As time goes by more and more are going to have to change the way they do business.

 

[Eli]

Rules without relationship leads to rebellion.

 

[Eli]

I don't like the AMC system at all and I think a lot of them are unethical. That being said the fees you are being offered are the result of supply and demand. I don't think that many of these AMCs are telling their customers the truth about how they find the appraiser. As time goes by more and more are going to have to change the way they do business.

Totally agree but I wouldn't try to isolate supply and demand as the only market forces at play.

 

[J Grant]

I don't like the AMC system at all and I think a lot of them are unethical. That being said the fees you are being offered are the result of supply and demand. I don't think that many of these AMCs are telling their customers the truth about how they find the appraiser. As time goes by more and more are going to have to change the way they do business.

Supply and demand ...even with that, you do realize that if the AMC cut of the fee was not present, fees would be higher?

And though you may not agree, for res lending work I don't believe supply and demand should be setting fees. It's fraught with conflict of interest on selection side and vulnerable to tactics as explained numerous times on this board, tat you refuse to recognize.

The VA panel does not play fee games per supply and demand ( and neither do other good clients) But to use VA as example, the panel appraises agree to work for a fee paid in that region ( and it'st higher than most AMC fees at this point) . Thus, since fees are not the issue, selection is done on rotating basis as long as appraisers demonstrate ongoing quality and are in good standing. Therefore it is not the reverse flea market of bidding or cat and mouse game with clients exploiting a given supply of appraisers in an area to pressure fees down. The VA assignments go to a roster of qualified appraisers without pitting the appraisers against each other for a lower fee. VA approved appraisers are free to also accept conventional mortgage work/other work of course.

 

[Eli]

It's ironic how very skilled and competent appraisers understand all the market forces in their practice, but fail to realize all the market forces at play in prices when it comes to the overall profession.